To build on this point, Tesla's shares ended this past week at a nosebleed multiple of 56 times Wall Street's forecast earnings per share (EPS) in 2023. For those of you keeping score at home, this equates to a 26,332% increase in value in just over 12 years. Plainly put, Tesla's incredible decade-plus rally has tracked the even more incredible growth of its underlying business. Although Tesla does generate revenue from its energy storage and solar installation operations, the vast majority of its sales are tied to (pardon the pun) cyclical-driven EVs. All rights reserved. While it could be that investors are experiencing a serious case of FOMO after the company's major shareholder Ron Baron predicted Tesla's value will exceed $1 trillion in the next 10 years, shares have seen above-average volume on retail trading platforms like Robinhood, an investing app that's often favored by millennials, which could be adding to the rally gaining steam. However, an abundance of headwinds could end this EV manufacturer's incredible 12-year run. Now that Tesla is profitable, looking at its potential runway to grow earnings will give clues to the stock's potential. Incredible. [ See: Artificial Intelligence Stocks: The 10 Best AI Companies.] If You Invested $1,000 In Tesla 10 Years Ago, Here's How Much You'd Nearly a decade later, a $1,000 investment in Tesla made in 2010 would be worth more than $36,000 as of Feb. 4, 2020, according to CNBC calculations. Not only is it seeing more competition from upstarts like Rivian and Lucid, which want to break into the market, but established automakers like Ford, GM, and Toyota are vying for a slice of the pie, too. To make the world smarter, happier, and richer. Here's Why. Vous pouvez modifier vos choix tout moment en cliquant sur le lien Tableau de bord sur la vie prive prsent sur nos sites et dans nos applications. Not many people. To make the most of its first-mover advantage, Tesla had to rapidly grow its production capacity, which it did at a prodigious pace: In 2010, the company delivered less than 1,600 Tesla Roadsters, which was then its only vehicle. Over the same time, the vaunted S&P 500 has grown at an annualized rate of 11.3%. Sign up for free today. After the take-private tweets, Musk faced fraud charges from the SEC. But this doesn't mean that the S&P is a worse investment. There are many speculations as to why Tesla's stock jumped so much on Tuesday. Founded in 1972, Money provides up-to-date news and educational resources to help people live richer and create lasting returns. It is traded on . And if you invested in Tesla in 2010, when it made its initial public offering, that investment could have paid off, too. It's not a direct comparison, but it shows you how little respect Tesla's future-looking growth outlook is getting from investors. According to data tracked by InsideEVs, global plug-in EV registrations were approximately 8.8 million through 11 months of 2022 and could hit around 10 million once December data is tallied. Tesla lost money on a net income basis every year since it was founded in 2003, until 2020. Opinions expressed on this site are the author's alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. If you're one of the lucky few to have held firm on Tesla throughout the years, kudos! Cost basis and return based on previous market day close. Can Earnings Recharge Electric Vehicle Stocks? A $1,000 investment in the company would be worth more than $12,000. Just about every manufacturer today has an EV on the road or in the works. These companies stand to benefit from a generational shift in consumer behavior. A May 2018 paper from Hendrik Bessembinder at Arizona State University found that between 1926 and 2016, the best-performing 4% of public stocks accounted for the entire net gain in the U.S. stock market. Tesla made its initial public offering (IPO) on NASDAQ on June 29, 2010, with shares priced at $17. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. And because thestock market has historically increased in value over time, these low-cost funds are considered relatively safe, reliable investments. The Motley Fool has positions in and recommends Tesla. By comparison, a $1,000 investment in the. Investors looking for companies prepared to weather uncertain times can consider these financial stock picks. As a reference, analysts call for earnings per share (EPS) to average 24% annual growth over the next three to five years. The EV maker now owns a dominant position in the market with a 72% share. Early investors are still sitting pretty. Investors look to the precious metal amid market uncertainty. Since hitting their respective all-time highs between mid-November and the first week of January, the timeless Dow Jones Industrial Average, broad-based S&P 500, and growth-focused Nasdaq Composite, have lost as much as 19%, 24%, and 34% of their value, respectively. That's enough to make the stock an excellent buy if you can look to the next decade and beyond. Even as Tesla confronts a growing number of competitors, its sales are ramping up. idea to buy $10,000 in TSLA and see if I could use any gains in the stock price to help pay for the c. Tesla's 2022 EPS of $4.07, growing 24% annually for five years, puts 2027 EPS at $11.93. Tesla's stock is certainly on hyperdrive, explaining its strong 99 IBD Composite Rating. *Average returns of all recommendations since inception. The Motley Fool has positions in and recommends Tesla and Twitter. Sign up now: Get smarter about your money and career with our weekly newsletter, Don't miss: Jay Leno on why he still works at 71: I don't want to be 'a rich guy that sits in the pool', Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. In fact, the S&P 500's first-half performance was its worst in over a half-century. On Monday, upon news of rental company Hertz making a huge purchase for their fleet, Tesla's stock became valued at a record $1,023.59. By signing in you agree with ourcommunications and usage terms. Sean Williams has no position in any of the stocks mentioned. If you could travel back in time and invest $1,000 in Microsoft back then, you would have made a profit of a staggering 1012.22%, or in other words, your $1,000 investment would balloon to $11,122.21 today. This video will highlight just how much . It has also announced the Cybertruck and Tesla Semi, but has remained noncommittal about launch dates for both vehicles. Even if the P/E compresses to 25, the resulting share price is $298, a 54% total return over five years. It's already the fifth most valuable company in the S&P 500, ahead of Facebook (FB). Despite being a visionary, Musk has created all sorts of legal, financial, and operating headaches for the company he runs. Over those 10 years, Tesla went from selling just the Roadster to offering the Models S, 3, X and Y. 2 Things the Smartest Investors Know About Tesla Stock, Tesla Makes Huge Strategic Decision With Massive Implications for Tesla Stock Investors, A Bull Market Is Coming: 2 Stocks That Could Skyrocket, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Why I Refuse to Chase the Maximum Social Security Benefit, 1 Trillion-Dollar Growth Stock Down 28% You'll Regret Not Buying on the Dip, A Bull Market Is Coming: 3 Stocks to Buy Without Hesitation, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. To begin with, the company is being treated as if it's not cyclical and will somehow escape the supply chain challenges currently afflicting other automakers. Companies will seek the highest valuation they can when going public, and newly public stocks tend to underperform the larger market in the short and medium term. Don't miss: If you invested $1,000 in Chipotle 10 years ago, here's how much money you'd have now. In August 2018, Tesla's CEO, Elon Musk, sparked controversy with a now infamous tweet that said: "Am considering taking Tesla private at $420. Even if Tesla's market share falls as competition ramps up (which will likely happen), the addressable market is big enough that Tesla could grow by multiples in volume and revenue from where it is today. Investors May Not Have Seen the Worst of Tesla Stock. How Much Would $10,000 Invested in Tesla Stock at IPO Be Worth Today? The last dozen-plus years have also seen the company diversify into areas like insurance, charging infrastructure, and energy storage and generation. (SecondSide/stock.adobe.com). Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Cost basis and return based on previous market day close. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. In other words, a $10,000 investment in Tesla's IPO in 2010 would now be worth a staggering $2,643,178. On Monday, upon news of rental company Hertz making a huge purchase for their fleet, Tesla's stock became valued at a record $1,023.59. As noted, today the EV maker's stock is down to around $700 a share, which hurts if you got in near the top, but means you're still doing phenomenally well since the IPO. While there's no denying that Tesla's naysayers have been decisively wrong up to this point (myself included), there appear to be more lingering headwinds than catalysts for Tesla at its current market cap of $939 billion. Five years ago, on Nov. 2, 2016, Tesla was trading at around $38 per share. Tesla hit the public markets in June 2010, priced at $17 per share. Go back a few more years and your return is. Note that Tesla was added to the S&P 500 in December 2020. That's already an enormous performance gulf, but those differences become even more magnified over time. Something else to take into consideration is that Tesla is still getting a boost from the sale of renewable energy credits (RECs). You will get all news about Tesla and Elon Musk. Where Would You Be If You'd Invested $1,000 in Tesla Five Years Ago? As a result of the settlement, Musk and Tesla each paid a $20 million fine, and Musk was forced to resign from his chairman role on Tesla's board. This means its split-adjusted IPO price is about $1.13 per share. So, if you had invested $10,000 at this price, you would have acquired 588 shares. Join me every day as I break down the latest news and developments in the world of tesla stocks, tesla stock market, and tesla investing. Investors know that even though Tesla (TSLA 2.57%) is trading sharply lower today compared to its all-time high last November, those who took a stake in the electric vehicle (EV) manufacturer's initial public offering (IPO) in 2010 would still be fabulously wealthy. It's a multi-millionaire maker. Learn More. It faced this problem between 2017 and 2019 -- it needed to make enough Model 3s (its lowest-priced model) to turn a profit. That strong performance comes even though the stock has fallen more than 50%. Through the first six months of 2022, the company has delivered 564,743 EVs. And at its current value, Tesla is worth roughly five times more than Toyota Motor (TM), making it the most valuable automaker in the world. Rich Duprey has no position in any of the stocks mentioned. Your accounts lets you Digg (upvote) stories, save stories to revisit later, and more. BREAKING: Futures Steady, First Republic Fate In Focus. That's more than a 20,000% return. The company had its ups and downs over the years, facing the threat of bankruptcy as recently as between 2017 and 2019, when Tesla increased the production volume of its Model 3. Despite a sharp rebound in the early months of 2023, investors who acquired the stock in late 2020 are still treading water, and anyone who bought in at all-time highs just a year later is still nursing a more than 50% loss on paper. That's already higher than what analysts think the stock should be worth in 12 months, or 910.94 a share. The new era of energy production is linked to old-school metals extraction. Tesla went public in 2010 at a price of $17 per share. Investors looking to participate in the growth of the metaverse can use these six ETFs for exposure. A lot of that has to do with the introduction of the Model 3 and Model Y, the mass-market sedan and crossover EV, respectively. If the U.S. and global economies continue to weaken on the heels of historically high inflation, consumers are almost certain to pare back their spending. dvelopper et amliorer nos produits et services. This Is How Much You'd Have Made If You'd Invested $10,000 At Tesla's How on earth does a stock go from being relatively obscure to the fifth-largest publicly traded company in the U.S. in just 12 years? It enacted a 5-for-1 split on Aug. 31, 2020, and recently completed a 3-for-1 split on Aug. 25, 2022. If you'd invested 1,000 in Tesla Motors, Inc. (TSLA) on March 7, 2011, today that investment would be worth. However, since its IPO, Tesla has undergone two forward stock splits. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Comparative assessments and other editorial opinions are those of U.S. News Over the trailing-10-year period, the S&P 500 has returned a hearty 183%, and that's not including dividends paid. Authors may own the stocks they discuss. Despite Tesla's massive stock growth, any individual stock can overperform or underperformandpast returns do not predict future results. Why Is Everyone Talking About Tesla Stock? If You Invested $10,000 in Tesla Stock at Its IPO, Here's . Get market updates, educational videos, webinars, and stock analysis. The answer mostly lies with innovation and its CEO, Elon Musk. Bond funds have some distinct advantages over holding individual bonds. If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $1.8 million now. Unfortunately, there is no time machine to allow you to go back in time and invest in Tesla. Tesla's stock is having a monster month, despite some recent hiccups, including a flawed rollout of its driver assistance software and confusion over whether Hertz really inked a deal with the electric automaker to purchase 100,000 vehicles. That works out to a more than 70% average annual return. Registration on or use of this site constitutes acceptance of our. Tags: investing, stock market, Tesla Motors, Elon Musk, Toyota, IPOs, money, revenue, profits, technology, electric vehicles. Even though most of us would love to have made $10,000 by simply letting . Offers may be subject to change without notice. And investors had better hope Tesla hits these targets. Although patience has paid off handsomely for long-term investors in Tesla, this top performer looks to be headed for a breakdown.
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